I missed this bottom pattern Thursday on FAS. The only think I can think of is that I was so focused on looking for bearish opportunities that I tuned out this trade. I’m normally pretty quick to go from bullish to bearish, as I don’t swear allegiance to one side, but this one got away from me. The way to play this would have been to buy into the selling Thursday morning and put a tight stop in the $7.50 area as it had previous bottomed around the $7.60. You want to give it a little room to breathe but not much because the potential for a big sell off was there, but never materialized.
I would say it could drift higher between Friday’s closing price and $12.51 (Previous Jan. high). If we get there too fast than I expect it to reverse quickly. But if we can move higher over a number of days maybe we can consolidate right below it before breaking out. I would say the strength of this rally will depend on how the financials behave.
